A Consumer Has a Utility Function of the Form U(x

question 56

Essay

A consumer has a utility function of the form U(x, y)= x a + y b, where both a and b are nonnegative.What additional restrictions on the values of the parameters a and b are imposed by each of the following assumptions?
a.Preferences are quasilinear and convex, and x is a normal good.
b.Preferences are homothetic.
c.Preferences are homothetic and convex.
d.Goods x and y are perfect substitutes.

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